# a simple matplotlib plot with legend, labels and a title
dfu.plot();
plt.legend(loc=’best’);
plt.title(“GDP in current US dollars ($USD)”);
plt.xlabel(‘Date’); plt.ylabel(‘GDP in current US dollars’);

Top largest five companies in market caps are: Apple, Amazon, Google, Microsoft and Facebook.

About 25% of Apple’s sales come from China. If the trade war is prolonged and the Chinese government retaliates against Apple companies, sales in China will decrease. The growth of Amazon, which is the second largest market capitalization, is scary. Last year it rose 56%. Over the same period, Apple grew 24%. If Amazon continues to grow at this rate,, it will surpass Apple’s market cap. Microsoft’s growth is also frightening. It has been growing 27% this year. If Microsoft continues to grow at this growth rate, Microsoft can also beat Apple. Netflix’s market cap is not the highest price yet, but the share price has risen the most among FAANG companies.

The reason for this increase for IT major companies is that these companies’ exposure to China is very low. Also, if the intellectual property rights issue with China is resolved, the profits of the companies will increase substantially. Also, if China accepts the demands of the United States, it is likely that these industries will enter China.

The P / E ratios of FAANG: Apple’s P / E ratio is the lowest. And it is Google. The stocks of Facebook grew only 0.7% while experiencing fluctuations several times this year for various reasons.

First – dividends : whether the company can make profits to pay dividends. Sales in the second quarter were $ 53.2 billion, up 17.3 percent from the same period last year. Net Profit is 22%. I think it is a very good yield compared to others in S&P 500 (the average net profits of S&P 500 is approximately 10%).

Second – growth potential: the growth potential of Apple stock is lower than other technology stocks but higher than other non-tech stocks. If the trade war with China is resolved, Apple would be a beneficiary. Many smartphone manufacturers in China will have to pay for Intellectual property fees to Apple. Also, the prices of Chinese products will rise. The price of the iPhone would become competitive.

Third – Safety / Liquidity – Very good. It is almost safe at reserve currency levels such as U.S. dollar and Japanese Yen. Even the Swiss central bank also owns Apple shares. Apple stocks are also very liquid. It is easy to buy and sell. This liquidity was excellent, and it became a favorite stock of the rich people such as Warren Buffett, who holds almost 5% of Apple shares. The Swiss central bank also owns about US $ 90 billion in US stocks and holds about $ 3 billion in Apple shares as of 11/2017.

I think one of the reasons for the rise of Apple stocks is that the Trump President’s tax cut policy. The Apple company will bring more than $ 200 billion in cash abroad to the US and buy back $ 100 billion of Apple stocks from the beginning of this year. The Apple originally did not pay dividends and repurchases When Steve Job was alive. Since Steve Jobs passed away, the Apple company has been continuing to buy back stocks since 2013. So, the number of shares issued has decreased. The repurchase of stock is similar to quantitative easing (QE), but conducted by a company.